Bank of Baroda on Friday said its board has approved a plan to raise $3 billion through borrowings. The bank will also raise $1 billion under its medium term note programme through foreign currency bonds.

“The board of directors of the bank has considered and approved raising of foreign currency funds through issuance of bonds up to $1 billion under the bank’s MTN programme and through issuance of certificate of deposits up to $3 billion under CD programme in single or multiple tranches at an appropriate time,” the bank said in a stock exchange filing.

“The board of directors have also considered and approved raising of funds through bilateral/other borrowings up to $3 billion,” the exchange filing said.

The Bank of Baroda scrip at Rs 176.35 was marginally down by 0.7 per cent over the previous close at the Bombay Stock Exchange. The bank’s standalone capital adequacy as of December 31, 2022 was at 14.93 per cent, down 54 basis points from 15.47 per cent as of December 31, 2021.

Bank of Baroda managing director and CEO Sanjiv Chada had told market analysts following the third quarter results that the bank’s capital adequacy at the end of 2022-23 is estimated to be north of 16 per cent.

The public sector lender joins the other peer banks in looking to raise funds through multiple instruments and shore up its capital base to comply with Basel 3 requirements amid rising credit demand.

SBI had said that the executive committee of the central board of the bank had approved long-term fund raising of up to $2 billion.